IBM layoffs soaring high, jobs shifting to India
58Layoffs - A New Round
A new round of layoffs is coming and IBM is planning on announcing it soon as 5,000 US based workers loosing their job as IBM shifts some of the work to India.
The new round of IBM layoffs which is expected to be formally announced Thursday, represent about 4% of IBM’s US based workforce of approx. 115,000 people. This will be the second round of cuts this year for IBM, having cut thousands of jobs back in January.
The controversial aspect will be the offshoring; IBM has a big presence in India and has previously replaced US workers with workers based in India who demand far lower wages. It’s believed that many of the jobs being cut this week will also shift to India, although the exact number isn’t known.
IBM’s employees’ union blow-by-blow accounts of Big Blue’s layoffs
IBM’s employees union is delivering blow-by-blow accounts of the layoff tonight. According to the Alliance@IBM site, 1,674 jobs have been cut in application services with employee reports filtering in. IBM’s employee union reckons that 4,000 U.S. jobs are on the chopping block.
Among some of the notable comments:
A letter regarding the transition of work in the Hartford Insurance account:
“Starting next week several Hartford delivery teams will be working directly with fellow IBM team members from India to begin the second phase of our Global delivery solution planned for the Hartford account. The teams will be engaged in a multi-week effort to facilitate knowledge transfer to prepare for migration of specific work activities to global delivery counterparts later in 2009. Your continued support and leadership is critical to ensure our overall success and to ensure we continue to deliver high quality cost effective solutions that IBM committed to the Hartford. Please ensure you and your teams actively support this effort.”
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I work for IBM Asia Pacific Region and currently with IBM Australia - a 26-year veteran with IBM. Just been told that I am terminated along with many others here, although the region kept reporting increase in business results!
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1st line manager confirmed last week that there will considerable pressure to cut jobs, regardless of current staffing levels, workloads etc. Even if a dept. is under budget they will have to cut staff. Hope they remember to be generous with those severance packages - especially considering some of the directions given to us by our managers.
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I’m an IBM employee who is often frustrated by the secrecy at the top and IBM’s unwillingness to be honest about the layoffs…. err, resource actions. However, I don’t think IBM is immune from the global economic forces that are leading to a more global workforce, the shifting of jobs from high-paying countries to lower-paying companies,etc. Do you really expect IBM to be the only company not having layoffs in this economy?
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Comments
Qwest Communications retired employees got sold out by the CWA Local union. Allowing Qwest Communications to deduct from our retirement pension for a very high insurance premium. CWA never send out letters advising retirees about the sell out. Good luck IBM employees, maybe you'll have better luck. Once you retire CWA local unions seem to face you out. Its all about Greed.
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BooRadley says:
9 months ago
Yeah it's a sign of the times. I also work in an IT outsourcing company such as IBM and we are looking more and more at the global delivery model. With IBM from what I recall they were investing heavily in China as well recently. Even offering some workers to continue their jobs in China and at Chinese pay scale. If I can get my debt paid off I'd debate on moving there myself and applying (Wife's family is in China)